OAPF and DIFs

Greater London Authority, Transport for London, Wandsworth Council and Lambeth Council

Vauxhall Nine Elms Battersea Development Infrastructure Funding Study Overview

- 19 schemes completed or under construction
- 31 sites with planning permission granted
- 25 thousand new jobs
- 3 tube stations
- 2 town centres
- 6.5m sq ft of commercial space with planning approval
- £15b+ total development value
- 20 thousand new homes
- 3.5-4k Affordable homes A unique place A unique partnership Vision and Planning

Shared Vision

“By 2030 the 227 hectares of Nine Elms and Vauxhall will become an exemplar and distinctive quarter of central London. As an integral part of the London offer, defined by Lambeth Bridge through Vauxhall to Battersea Power Station and Chelsea Bridge, high quality buildings and public spaces will provide opportunities for jobs and the choice of a variety of homes. New cultural and leisure development in this Thames River front location, supported by high quality services, especially public transport, will make this a successful and sustainable place where people will want to be.”

Annual business planning process which reviews capital spend programme

Approval of spend retained by the boroughs DIFs Study Oct 2010

looked at both the projected phasing of development of homes and commercial space up to 2031 and the likelihood of this being brought forward (16,000 homes and 5.4M sq ft of commercial space)

also took into account expected levels of affordable housing (though not itself classed as infrastructure)

infrastructure included utilities (energy, waste, water, gas), education, health, public space, parks, employment, culture, transport (including the NLE), community centres, emergency services

infrastructure was then costed and tested against what could be funded through a DIFs tariff (which would become CIL) and other sources – exceptions were river path and linear park

anticipated NLE complete in 2019

assisted boroughs in setting tariffs and agreeing allocation of funds for infrastructure

overall only a £50m gap over 20 years but some cash flow issues Phasing and Infrastructure Study Oct 2011

need for an updated view of development over time, expected population growth and a ‘balance sheet’ of when funding would be expected to come in and the infrastructure needs to be met

collected phasing info from each development, identified infrastructure funding required over time and level and timing of funding

outlined a series of phasing scenarios from optimistic to pessimistic - case for NLE used the most pessimistic scenario

calculated population yields for each scenario and plotted funding requirements and anticipated funding to identify gaps

anticipated residential units had increased to 18,000

faster than anticipated delivery improved the income forecast over next 5-10 years and plugged some gaps Northern Line Extension

- New tube link to serve Nine Elms and Battersea
- Wider economic benefits up to £7.9bn and up to £4.5bn in additional tax revenue for exchequer
- Allowed greater densities and 3x the number of jobs
- £1bn underwritten by government guarantee – financed by development levy and future business rate revenue
- “Enterprise Zone”
- Open by January 2020 – on site now Infrastructure

Utilities Primary Substations District Heating Network Telecoms Waste management Drainage strategy

Social Infrastructure New primary schools Additional GPs New community facilities

Parks and open spaces New linear park Improved river path New park at Battersea Power Station Strategic Links

Leisure and Sports Swimming Pool Football pitches New cultural activities Shops and entertainment

Transport Vauxhall gyratory Northern line extension Cycling Strategy Pedestrian and cycle bridge Bus provision Riverbus services Benefits and Challenges

Benefits

gave us assurance that over the programme lifetime we could fund our infrastructure – and identified when there may be cashflow issues

provided a level of financial certainty which helped make the case for the NLE

alongside the Phasing Study, provided us with a capital programme to inform our business planning and performance

evidence for Lambeth and Wandsworth Councils to set DIFs and then CIL tariffs and forward plan the capital spend

fed into further studies such as construction logistics planning, education and health provision, utilities loading, skills forecasting etc. which has influenced partnership working, project planning and community benefits mapping Benefits and Challenges

Challenges

- getting the data takes time
- phasing scenarios never 100% accurate and immediately out of date – need to refresh and review
- some partners are slow to engage and feed in their infrastructure requirements
- particularly regarding utilities planning and provision, you can never start too early
- needed to set up an SPV in order to talk collectively with utility companies